Moody’s, a bond credit rating business and one of the world’s three largest rating agencies, has announced on Friday that Poland’s credit rating, in other words, its ability to repay debts, will remain at its current level.

The rating is a promising sign for foreign investors.

The agency assessed that due to Poland’s NATO membership and its improvement in relations with the European Union following the recent change in government, it is in a stable place to face geopolitical events.

It also said that Poland has solid economic growth prospects, meaning it is able to offset a projected increase in the government’s debt and falling capacity to borrow.

Nevertheless, Moody notes that Poland’s rating could be improved if progress in certain areas were made. It noted particularly the need to speed up progress on judicial reforms and improve relations between the president and the coalition government.

Stronger government efforts to reduce deficits and the accumulation of debt would also be positive for the credit rating, the agency said.

Moody’s analysis estimates that Poland’s GDP will grow by 3.5 percent in 2025.

The public finance sector deficit will exceed 5 percent of GDP by the end of this year with the sector's debt increasing to 57 percent of GDP. Debt stabilization prospects are predicted from 2026.